Microsoft is reportedly “winding down” a cloud AI deal with Oracle.
For your “is that a bubble popping?” Bingo cards: Bloomberg reports that Microsoft is reconsidering deals to rent server capacity from “neoclouds” to power its AI efforts, and has been turning off rented capacity from Oracle since declining to renew a 2023 deal.
TL;DR
- Microsoft is reportedly ending a cloud AI deal with Oracle.
- The company is reconsidering renting server capacity from "neoclouds" for AI efforts.
- Microsoft stopped renting capacity from Oracle after declining to renew a 2023 deal.
- The computing power from Oracle used older Nvidia chips, which became less useful to Microsoft.